According to an industry report, more than two-thirds of Indian startups will require extra capital in the upcoming weeks. As we are steering through the coronavirus pandemic, many startups in India will need additional investments.
Indian Startups News – Survey Report
Nasscom, an industry body, conducted a survey related to startups in India. Some facts & figures were scary and mind-wobbling. Around 70% of Indian startups have less than three months of cash-backup in the bank. Moreover, another 20% have enough that they will barely make it to 2021.
Only 8% of Indian startups that participated were sure that they had enough money to survive more than nine months. Furthermore, the Nasscom survey report showed that 90% of startups in India were facing a decline in revenues. More astonishing Indian startups news is that 30% to 40% are closing down or pausing their operations.
As Indian startups are facing a rough time, many are thinking of opting for a new business or vice versa. About 54% of the survey participants are looking forward to new opportunities. Others are betting on stretching their growth pool to the healthcare sector.
More Astonishing Results
Investors are becoming cautious about writing checks to new firms. Last month Indian Startups news was not promising to the growing businesses. A lot of prominent VC funds made it clear to the startups that it would be hard for them to raise new capital in the upcoming months.
For some Indian startups, other factors are keeping them at bay. Over 69% of startups in India that fall into the category of fintech & retail claim that they face delays in payments from their clients. Alternatively, here are three things the Indian government needs to implement for startups.
Growing tensions & problems have left half of such Indian startups to enforce the inevitable. Cutting pays, reducing marketing spends & switching to a lower-quality vendor are some schemes that startups are using to save money.
Declining Startups In India
Be it transport, travel, tech, and you name it, every Indian startup is going through multiple problems. Indian Startups news hasn’t been kind to entrepreneurs. 78% of the Indian startups related to transportation or travel are redesigning their business models & revamping their products as per the current context.
More than two-thirds of the survey respondents said they are looking for policies that will ease the regulations and rules. Moreover, many are requesting some sort of relief in taxations for a few years.
Good News for Startups in India
In May 2020, the Indian government announced a whopping $266 billion stimulus package to assist the declining economy. Nirmala Sitharaman, the finance minister of India, said that startups in India would be able to gain some relief from this package. This Indian Startups news brought a sigh of relief.
Last year, Indian startups raised a record $14.5 billion. Indian government knows the result of the fall if they fail to rescue Indian startups.
COVID-19 has been ending the success streaks of many countries. From the economy to the health crisis, everything is in the danger zone. Will your startup be able to survive this cold night? The answer only lies in the future.